<< I'd be inclined to agree that the shear difficulty of developing the KG field certainly would merit taking a good look at an offer by a major (BP sounds good to me)... IF it were large enough! >>
Of course they don't have to get all the KG production platforms (PP's) in place at once. They will design this as a step-out project once they have a grip on the pipeline locations.
The buy-out price will not be based solely on KG, IMHO. GGR was also granted blocks under the last NELP round, and they have partials in 3 other locations, all of which have good prospects.
The decision to sell/not sell (if rumor is true) will be made by the BOD. A lot depends on how bad others, aside from JPR and Chandra, want to cash out. As I recall, the other board members are not E&P guys.
I'd be inclined to agree that the shear difficulty of developing the KG field certainly would merit taking a good look at an offer by a major (BP sounds good to me)... IF it were large enough! But, it'd probably be pretty hard to get "full value" for what GGR is really worth this early in the discovery. I suppose it'd greatly depend upon the skill of the negotiator(s)...
<< Normally for a well established oil field we need one PP per section and may be some fracturing from time to time. For a deep gas field we may need uto 20 PPs per section. The cost is enormous if you want very high recovery in a deep complex gas field. >>
I agree, the costs to develop KG are very large and Tarapur is a nice easy little money-maker. But the political, and soon to be financial motivation for development of KG is in place. IMO they will develop both at the same time. GGR would really benefit by getting some production established, Tarapur sounds like the quickest way to get there.
Warning floated a buy-out rumor this am. Interesting week ahead.
gordo: The Investment need to develop a Gas elephant like KG is extremeley large. On the other hand development of Tarapore which is sweet oil field requires less capital and is easy.
Normally for a well established oil field we need one PP per section and may be some fracturing from time to time. For a deep gas field we may need uto 20 PPs per section. The cost is enormous if you want very high recovery in a deep complex gas field.
The driller is GSPC, Gujarat State Petroleum Corporation. GSPC is owned by the State of Gujarat, India. Jubilant Enpro and GGR are providing technical expertise. I'm not entirely certain what Jubilant is bringing to the plate, maybe some drilling expertise as well.
Check out GSPC's web site on "DEEN DAYAL" for the bigger picture.
Sorry you didn't get an answer. I saw your question, early AM. Figured pros here would answer.
GSPC Guijirat State Petroleum Corp. is the "operator".
Perhaps others on bd know if they have local or ex-pat rig bosses/workers or is a hired contractor and crew manning the rig.
Best regards, Bambusario
<<The last time we had bad news it hit like 4.90 intraday but we were only trading at like 6 something at the time. >>
Been meaning to ask you about this, TSParis, because I've always attributed the 10/25 drop entirely to a coordinated MM stop loss raid/short attack. I didn't think we got the news about the drilling delays on KG17 until late November or early December, much after the fact. Did I miss it? If it was known to some, wouldn't the shorts/bashers have made it known to all, to further their end?